The rabbits were processed at Bendigo Game Birds' plant, at Tarras, near Wanaka, into cuts similar to chicken, such as whole rabbit, boneless thigh and fillet.
Bendigo Game Birds partner Steve Brown said the company started supplying New World supermarket in Cromwell, then Dunedin City New World and in the past three months, had also gone into 12 other South Island supermarkets and about four in the North Island.
"We're sending 300 to 400 rabbits to New World supermarkets."
About another 100 were supplied to restaurants around the country.
Demand had grown out of an increase in people's awareness of food and its origins with wild, free-range rabbits appealing to many looking for an alternative to the traditional white meat of chicken, he said.
It also cost a similar amount, with fillet or boneless rabbit going for $21.99 a kg.
Getting into supermarkets was also a result of achieving the right cuts and packaging, Mr Brown said.
"The challenge was keeping it affordable and getting the processing efficient.
''It took a long time to get it right.
''It's a major achievement."
His staff of three was now processing about 500 rabbits a week, shot by three contract shooters on Bendigo Station.
Increased demand was not a problem as the rabbits seemed to be breeding as fast as they were being shot - although in some places on the station, numbers were at an acceptable level, he said.
The target was to process 1000 rabbits a week and it was expected shooting on new farms would be needed to meet that level of demand.
"It's assisting farmers to control a pest."
